Sick of building maintenance and a depreciating asset ?

All through real estate agents (28 residential 1 commercial)
5 further failed attempts to buy ...by tender
All NZ
Ps 4 the leaseholder had options to buy ...so I am down to 25 in total
Weighted average net yield 6.4pc
I will update you in 2038 whether it was a good move or not

 

Have you continued to buy these Beano?

 

No the recent offerings have asking yields that are too low relative to the cost of funding.

 

The market still seems way to hot at the moment from what I can see. Vacant properties selling for pretty much the same price as tenanted ones, at least at the entry level. There seems to be little value put on the lease. Yields in Melbourne for Industrial look around 3.5-5.5%. Cost of funds 7-8%?

I understand rents are going up strongly but there is a serious mismatch between cost of funds and yields at the moment.

 

Beano is retire age. It took him many decades to have so many properties.
It is quite an achievement.

 

You can skip the property purchases for a few years until the properties are at a price that create profit.
No need to buy every year.

 

People often don't realise that the older generations (who may have larger portfolios) have been doing it for a long time & just quietly adding to the portfolio when they can. They then call you lucky.

 

Lucky to have been born with your head screwed on?

 

Better that than losing it.